Monday, October 22, 2012

Dubai real estate market indicates gradual recovery

The real estate sector in Dubai is showing signs of gradual recovery, with residential demand picking up in prime established communities, and banks beginning to lend again. Moreover, the increased tourism stimulates demand for hotel properties, said developers, when speaking during the just concluded Cityscape Global 2012, the region’s biggest property event.

The 11th edition of Cityscape Global was unveiled in Dubai on Tuesday by Shaikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, the Deputy Ruler of Dubai.

Nearly 26,700 residential units are likely to be ready from 2012 to 2014 outside Central Dubai in areas such as Jumeirah Village, Dubailand, Dubai Silicon Oasis, Dubai Sports City and Al Furjan, said the Jones Lang LaSalle (JLL) report titled ‘Dubai Real Estate: Market overview Q3 2012.’

Real estate developers at the event said that they are hoping for the market to climb up over the next 12 months. The CEO of Dubai Properties Group, Khalid Al Malek, said that there is already a growth in demand and supply over the past 12 months, with highest demand being for residential units, and particular demand being for villas, followed by single and double bedroom apartments. Areas with good transportation and infrastructure will perform better.

According to Damac Properties, the company will have atleast 4000 serviced hotel apartments that are under construction, by end of next year. The Senior Vice President of Damac, Niall McLoughlin, said that there is an upturn noticed in the Dubai realty sector.

The prices for properties in Downtown Dubai, Dubai Marina and Sheikh Zayed road has seen price appreciation, while secondary areas such as Dubailand and Emirates Road too, will see good value for money, and make potentially good property investments.

Further, there has been considerable increase in demand for holiday homes in Dubai from India and Lebanon, and for purchase of apartments for foreign students studying in Dubai.

The Cityscape Global 2012 edition has been highly successful having received good response. It has grown by 50% from last year, with more than 20,000 participants. The show also included investor round table sessions, four dedicated industry conferences, including the Global Real Estate Summit, the World Architecture Congress, the Retail City Conference and Alternative Dispute Resolution Conference.

No comments: